Zimmer Biomet Holdings Inc. (ZBH) Earns Buy Rating from Needham & Company LLC

Needham & Company LLC reaffirmed their buy rating on shares of Zimmer Biomet Holdings Inc. (NYSE:ZBH) in a research report report published on Thursday. Needham & Company LLC currently has a $148.00 price objective on the stock.

“ZBH disclosed this morning that it received a Form 483 following an FDA inspection of a legacy Biomet manufacturing plant in Warsaw, Indiana. ZBH intends to address the findings with a written response to the FDA and is executing a remediation plan to address the issues. Form 483s often lead to warning letters so we would not be surprised if ZBH receives a warning letter as well. Importantly, we note that ZBH stated in its press release that most of the product lines impacted by supply issues in 3Q16 have now returned to full shipping capacity and that the anticipated full impact of the supply chain issues and the remediation plan was included in the revenue and EPS guidance it issued on 10/31/16. The remediation efforts could impact ZBH’s 2017 gross margin but given our 2017E COGS of $1.94B, our best guess at this point is that this won’t be material.”,” the firm’s analyst wrote.

Several other research firms have also recently weighed in on ZBH. RBC Capital Markets restated an outperform rating and issued a $130.00 price objective (down previously from $143.00) on shares of Zimmer Biomet Holdings in a research report on Tuesday, November 1st. Barclays PLC boosted their price objective on shares of Zimmer Biomet Holdings from $140.00 to $145.00 and gave the stock an overweight rating in a research report on Tuesday, August 23rd. Canaccord Genuity restated a buy rating and issued a $130.00 price objective (down previously from $150.00) on shares of Zimmer Biomet Holdings in a research report on Monday, October 31st. Argus restated a buy rating and issued a $140.00 price objective on shares of Zimmer Biomet Holdings in a research report on Thursday, September 22nd. Finally, Northcoast Research cut shares of Zimmer Biomet Holdings from a buy rating to a neutral rating in a research report on Tuesday, November 8th. Five research analysts have rated the stock with a hold rating and twenty have issued a buy rating to the stock. Zimmer Biomet Holdings currently has a consensus rating of Buy and a consensus price target of $131.15.

Analyst Recommendations for Zimmer Biomet Holdings (NYSE:ZBH)

Shares of Zimmer Biomet Holdings (NYSE:ZBH) opened at 102.86 on Thursday. The stock has a 50 day moving average price of $102.43 and a 200 day moving average price of $119.78. Zimmer Biomet Holdings has a 12 month low of $88.27 and a 12 month high of $133.21. The firm has a market cap of $20.60 billion, a PE ratio of 57.59 and a beta of 1.23.

Zimmer Biomet Holdings (NYSE:ZBH) last posted its quarterly earnings data on Monday, October 31st. The company reported $1.79 earnings per share for the quarter, hitting the consensus estimate of $1.79. Zimmer Biomet Holdings had a net margin of 3.46% and a return on equity of 16.48%. The firm earned $1.83 billion during the quarter, compared to analysts’ expectations of $950.20 million. During the same quarter in the previous year, the company posted $1.64 EPS. Zimmer Biomet Holdings’s revenue was up 4.0% on a year-over-year basis. On average, equities research analysts expect that Zimmer Biomet Holdings will post $7.92 EPS for the current year.

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The company also recently declared a quarterly dividend, which will be paid on Friday, January 27th. Investors of record on Friday, December 30th will be given a dividend of $0.24 per share. This represents a $0.96 annualized dividend and a dividend yield of 0.93%. Zimmer Biomet Holdings’s dividend payout ratio is 75.00%.

In related news, insider David A. Jr. Nolan sold 5,050 shares of the stock in a transaction that occurred on Friday, December 2nd. The shares were sold at an average price of $101.11, for a total transaction of $510,605.50. The transaction was disclosed in a document filed with the SEC, which is accessible through this link. Corporate insiders own 1.22% of the company’s stock.

Hedge funds have recently bought and sold shares of the company. Liberty Capital Management Inc. bought a new stake in Zimmer Biomet Holdings during the third quarter worth $108,000. NEXT Financial Group Inc boosted its stake in Zimmer Biomet Holdings by 64.5% in the third quarter. NEXT Financial Group Inc now owns 913 shares of the company’s stock worth $119,000 after buying an additional 358 shares during the last quarter. Tower Research Capital LLC TRC boosted its stake in Zimmer Biomet Holdings by 205.3% in the second quarter. Tower Research Capital LLC TRC now owns 916 shares of the company’s stock worth $110,000 after buying an additional 616 shares during the last quarter. Parkside Financial Bank & Trust boosted its stake in Zimmer Biomet Holdings by 0.5% in the third quarter. Parkside Financial Bank & Trust now owns 964 shares of the company’s stock worth $125,000 after buying an additional 5 shares during the last quarter. Finally, Acrospire Investment Management LLC bought a new stake in Zimmer Biomet Holdings during the third quarter worth $130,000. 84.89% of the stock is currently owned by hedge funds and other institutional investors.

Zimmer Biomet Holdings Company Profile

Zimmer Biomet Holdings, Inc, formerly Zimmer Holdings, Inc, is engaged designing, manufacturing and marketing orthopaedic reconstructive products; sports medicine, biologics, extremities and trauma products; spine, bone healing, craniomaxillofacial and thoracic products; dental implants, and related surgical products.

5 Day Chart for NYSE:ZBH

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